The following is a case study into the benefits of outsourced human resources. Let’s take a look at a privately owned mailing & printing company in New Jersey. Their core competency is cross channel marketing, that is to say they blend the best of direct mail marketing with modern web-based technology. They are experts at creating effective mailing strategies, designing compelling printed marketing collateral, and then insuring this collateral is properly delivered. Best of all they do all of this in the most cost-effective manner.
In 2005, the company was undergoing a period of significant revenue challenges, with less demand for services than the previous year. It was at this time the current owner bought out his co-partner, taking on some debt but also seeing his responsibility in the day to day operation of the company dramatically increased. The owners expertise is in databases, printing, and the ever-changing world of the U.S. Postal Service. He now wanted to devise a long term, sustainable approach to making his workplace engaging and rewarding to his 30 employees.
The company was already using a payroll company, but found the consulting services offered very limited and very self-fulfilling “they were always in a state of constantly trying to up-sell their around the payroll services”. What this company really needed was a partner, a service provider that was equally vested in the long term success of the company and interested in holding up their end of the arrangement. After meeting with several different business consultants and service providers they chose TeamLink HR to be that partner.
The professionals at TeamLink invested several months to meet with the owner and stakeholders. They began to fully understand the company’s needs and created a road map that would provide the company with the necessary supporting processes, manuals, and benefits to meet the long term goals of the owner. In other words services and processes that were aligned with the vision the owner set for his business.
The approach TeamLink HR undertook was divided into four segments, always after interaction of the owner:
- They identified and crafted a benefits and retirement savings package that supported the owners desired engagement level and budgetary goals
- They developed an employee manual, to set the expectation and to frame the policies and benefits, as well as outline and implement an effective on-boarding process for new hires
- They designed and calendarized an effective employee review process
- They scheduled a full year of reporting to the employees, and reinforced the direct accessibility of the TeamLink HR professionals to the employees
One year later, and every year afterwards, the benefits and savings programs have been reevaluated. Employee reviews have been taking place, and TeamLink HR has reported on the volume and types of of calls their staff have been receiving from the employees, to see where any gaps in training or communication may fall. Employee retention in the first full year was significantly improved and has been very stable since that time. Most importantly the top line revenue has grown, despite a very difficult economic climate. Most recent results are very promising:
2008 year over year revenue growth = 3.4%, and employee head count remained flat
2009 year over year revenue growth = 2.6%, and employee head count rose 6%
20010 year over year revenue growth = 0.5%, and employee head count again rose 6%
Here is what the owner contributed for this case study:
“I would attribute the sustained growth our company has been observing to our ability to stay focused on new business development and managing the process of satisfying the needs of our clients. Our business is highly transactional, needs a high level of communication internally and externally, and is very price competitive. Having Teamlink HR to manage the human relations process has really allowed us to keep our eye on the ball and has helped us keep our benefits costs under control”.